IMGL Magazine July 2022

California sports betting

Sports Betting In California: Two Initiatives On The Ballot When voters in the worlds 5th-largest economy go to the polls in November 2022, their choices will shape the future of sports betting as John K Maloney outlines. V oters in California have the opportunity in the general election on November 1st to approve sports betting in California. There will be two sports to offer to the consumer in California a sports betting infrastructure that is sophisticated, entertaining and is user friendly. There is an opportunity to ensure that the billions of dollars that are bet with offshore books stay in California. It is a rare opportunity to become the number one sports betting jurisdiction in the world.

betting initiatives for them to decide on: Proposition 26, backed by many Native American Tribes (the “Tribes”), which does not permit mobile and online sports betting, and Proposition 27 which is backed by some of the largest sports betting operators in the US, and which does permit mobile and online sports betting. The following discussion will review these two initiatives. Is either one in the best interest of the consumers and taxpayers in California? In order to properly answer this fundamental question, it is imperative first to understand the sports betting market. Overview California is the 5th-largest economy in the world. It is the most populous state in the United States, with approximately 40 million residents. California has a GSP (“Gross State Product”) of US$3.4 trillion. There is a great opportunity

In a perfect world, sports betting in California would offer the consumer both in person and mobile and online sports betting. This is not conjecture. One only needs to look at New Jersey as an example of how mobile and online sports betting creates a dramatic increase in handle. Mobile and online sports betting is user friendly and offers a convenient, hassle free form of entertainment. Many sports bettors enjoy the atmosphere of the big screen televisions and the opportunity to relax and maybe enjoy a meal that a brick and mortar venue provides. However, in California many tribal casinos and horse race tracks are in remote locations or otherwise inconvenient to travel to placing an effective limit on the opportunities to wager. As a result, from the perspective of the California taxpayer, millions of dollars

42 • IMGL Magazine • July 2022

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